Funds Sue Wachovia Over Le-Nature's Debacle

Law360, New York (September 18, 2007, 12:00 AM EDT) -- A group of hedge funds that owns a big stake in Le-Nature's Inc. has slammed Wachovia Corp.'s securities arm with a fraud suit that says the bank knew about and worsened the bankrupt drink company's alleged fraud, dumping its debt onto unsuspecting investors and hastening its collapse.

The suit, which Harbinger Capital Partners and other hedge funds filed on Monday in the U.S. District Court for the Southern District of New York, names Wachovia Capital Markets LLC as well as Le-Natures' outside auditor BDO Seidman LLP...
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